Sabah plays a vital role in Malaysia’s energy sector, contributing approximately 50% of national crude oil production and 25% of natural gas production, in 40% active blocks of Offshore Acreage. Fresh opportunities are on the horizon through Petronas’ Malaysia Bid Round 2025, featuring exploration blocks in Sabah’s offshore Sandakan Basin alongside shallow-water prospects connected to existing infrastructure.

The Shell-operated Gumusut-Kakap-Geronggong-Jagus East (GKGJE) deepwater project has advanced to Phase 4 production, delivering around 21,000 barrels of oil equivalent per day — reinforcing Sabah’s strategic importance in Malaysia’s oil supply chain.

SMJ Energy Sdn Bhd, operating under its Commercial Collaboration Agreement (CCA) with Petronas, has expanded Sabah’s footprint across the oil and gas value chain. Through equity participation in the Samarang PSC, PCF Sabah, and other upstream assets, the state has secured greater revenue streams and strategic influence.

Local OGSE (Oil & Gas Services & Equipment) activity has grown significantly — rising from RM341 million to over RM2 billion — while the number of Sabahan OGSE contractors has increased from 263 to 475. Additionally, 88 local vendors have been recognised and awarded OGSE contracts through Petronas’ Vendor Financing Programme, unlocking more than RM120 million in financing support.

The Sabah Local Content Council (SLCC), formed in 2024, continues to advance local participation with clear targets: 80% Sabahan workforce representation and 30% local contract awards across the state’s oil and gas industry.